Extracts from The Project Proposal Toolkit

This is web page is extracted from The Project Proposal Toolkit. Download the (free!) full version containing templates and examples here.

The Project Proposal Toolkit

Get your case heard and get results!

Version 1.1, 23rd September 2008

(c) 2004-2008
Ian Lauwerys

www.legal-it.info

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Why use this toolkit?

I'm sure you want your firm or customers to benefit from investing in new technology, but how can you be sure that your proposals will get swift approval?

Ultimately, the key successfully negotiating your proposal through the annual budget round is winning the confidence of the Board, Partners and Finance Director by presenting your proposal in terms that they will understand.

My toolkit will show you how to:

* State the problem or opportunity for the firm and how your proposal addresses it.
* Present reliable estimates of costs and time-scales.
* Set out the financial and other benefits to the firm and individual Partners.
* Present your case in just six pages that will get read and get results!

Clearly there is more to success that writing a good proposal, but a poorly prepared one certainly won't help your case. If you're new to the organisation make sure you've done your homework before plunging in:

* Find out how the firm makes money. What types of work does the firm do and how is it paid? Who are the firm's clients, and what are their needs and problems?

* Find out about the firm's business priorities and financial constraints. Does your proposal address those priorities and can the firm afford what you are getting ready to propose?

* Get a clear understanding of the firm's budgeting and approvals process. The Finance Director should be your closest ally in preparing and selling your proposal to the Partners and Board.

Once you are well-grounded in the firm's business and the concerns of those running it, you'll find it much easier to identify projects that address the needs of the business and get them approved as a consequence.

Of course it is difficult to find the time necessary to prepare a winning proposal, especially if you have to prepare many such proposals and manage your operational budget. My experience as an IT Director of leading UK and international law firms and as an independent legal technology consultant had taught me that there are many other calls on your time, but I also know that the only way to ensure a success is to plan thoroughly.

If you find need help planning or managing a major project, selecting the right supplier, or preparing your annual budget feel free to check out more great resources at my web site:

http://www.legal-it.info/

Regards

Ian Lauwerys

The purpose of the project proposal

The project proposal defines your project. It sets out in simple terms:

* The problem that the project will address or the opportunity of which it will take advantage.
* The objectives of the project and how you will know if you have succeeded.
* The financial and non-financial benefits that the project will deliver.
* The likely costs of the project and the time-scales involved.

The proposal's main purpose is to communicate about the project to others. To do this, the proposal must be read and understood by a wide variety of audiences, for example the Board, the Partners, the fee-earners, your suppliers and your staff.

* Remember that a two-hundred page proposal and project plan isn't likely to be read by a busy Partner, still less understood and approved.

* Get straight to the point and use the type of language that they use. That way you'll avoid giving Partners wildly different and unrealistic expectations of what you're going to deliver, when and at what cost.

* If you can't sum up your project in five or six pages, your project is probably too big to be a (total) success. Reduce the scope of the project - the things that you will do, or reduce the scale - the people, time and money involved.

* Remember that you can always propose phase two of a project on the back of a triumphant phase one. On the other hand, rescuing a failing project by moving the goalposts or scaling down the project doesn't count as a success unless one is in government!

* You will need a detailed project planning documents later, and this can easily run to hundreds (or thousands) of pages, but save it for the people who care! Even when dealing with your project team and your suppliers, you'll probably need to distil the essential facts into more digestible communications.

A well written project proposal is a vital negotiating tool, used to gain understanding between you and the Partners in the firm. Be prepared to go back to the drawing board as many times as it takes in order to get agreement about what that the project is supposed to be doing.

You might like to think of the project proposal as 'the plan to create the plan'. Many projects fail because those involved assume that the project plan can be devised in its entirety right at the start of the project and never be revisited.

Your project will have far too little information about pretty much everything when it starts. The first quarter to half of a typical project should be all about figuring out exactly how you are going to meet your objectives.

What to include in the proposal

During the early part of your project, a good proposal must include the following:

* The request for approval. Tell the executive decision-makers exactly what you are asking for.
* The problem or opportunity. Sum up why the project is necessary at all.
* The project scope. The things that are included in the project and, often more importantly, the things that definitely aren't included.
* The project objectives. What the project must achieve, and constitutes success.
* The project schedule. How and when the project will meet its objectives. Keep this simple and very high level.

You will not have enough information to be prescriptive at the early stage.

* The project oversight structure. How will the project be managed, and how the Partners will be sure that the project is on track.
* The detailed planning budget. How much will it cost to investigate the problem and find the solution?
* The estimated implementation budget. Again keep this simple and high level. You won't have a definite budget until you've completed planning, selected a supplier and negotiated the contract.
* The statement of benefits. Summarise the anticipated financial and non-financial benefits to the firm and to the project stakeholders in particular. Focus on each person's WIIFM's (What's In It For Me?) You'll need to devise a full business case during the detailed planning phase.

A plan of two parts

As you can see, a well-run project is planned and approved in two distinct phases. It is very important that you are clear with the stakeholders about the phase your proposal has reached.

In the first phase, a high level proposal of approximately six pages is prepared. It covers the detailed planning phase of the project in depth, and provides only approximate time-scales and costs for the implementation phase.
You are asking for a relatively small commitment of time, resources and money to investigate the problem properly. Project success relies on having a thorough and accurate project plan, and creating a decent plan can't be done for free.

The full project budget cannot be created until the second detailed planning phase, when you will be in possession of all the facts, and will know exactly what is required to implement the project. During the first phase, you can only provide estimates of costs based on experience and initial research.

If your phase one proposal is approved, you know that it is worth investing the time and effort it will take to complete the detailed planning phase. If not, you don't have to write off months of effort when you're sent back to the drawing board.

Be clear that the outcome of the detailed planning phase may well be that the project should be canned, and that this does not constitute failure. In fact it demonstrates sound management practice - investing a small amount of money to avoid wasting a large amount.

During the second phase of planning, detailed project planning documents will be prepared running to perhaps hundreds or thousands of pages, depending on the size of your project.

Once armed with the facts, you can prepare a new draft of your project proposal that summarises the detailed and reliable estimates of time-scales and costs that your planning work has generated. Again, keep it short!

Use this redrafted proposal seek final approval for your project. At this stage you are asking for a relatively large amount of time, resources and money, so don't skip over it.

Detailed planning requires a considerable amount of consultation with the various project stakeholders (not just the Partners). If you do this properly, everyone will begin to understand how the project will affect them.

If on the other hand you find you are being asked for more and more detailed explanations, you probably didn't consult properly during the planning phase, so be ready to back up a step.

Between the two planning phases the project's objectives and scope should not change.

If the objectives or scope of the project grow, the project is likely to fail as deadlines loom, budgets run out and the project is diverted from solving the problem.

Similarly, if the objectives or scope of the project are reduced and you fail to communicate this properly, the Partners will be disappointed, and the project will not deliver the benefits promised at the start.

If you find yourself facing a radically different beast at the end of the planning stage, either your initial assumptions and those of the Partners were wrong, or perhaps you've been sidetracked by the demands of particular individuals and departments.

You must sit down with the Partners and examine the reasons for any changes in scope or objectives. Business needs and priorities often change very rapidly.

It is okay for projects to change along with them, provided everyone fully understands what has changed, the reasons why and the impact on deliverables, costs and time-scales.

Task: Open the "Template - Project Proposal.doc" file and complete the "Introduction" section of your proposal (A completed example may be found in "Example - Project Proposal.pdf".).

State clearly for what you seeking approval and why.

Examine the problem

A number of events will have occurred that caused you or others to think that this project was necessary. These events may have resulted from a formal businesses strategy development process, or perhaps in a less structured manner around the coffee machine.

Talk to as many people as you can about the following things, and make plenty of notes:

* Identify the key business issues, focusing on what has changed already and what needs to change. What external and internal factors are driving the project? How quickly are they happening?
* Look for the positive as well as the negative. Problems often throw up new opportunities for the business.
* What will happen if nothing is done? How likely are the consequences and when will they occur?
* Map out the people, processes and systems that will need to change to fix the problem or take advantage of the opportunity.
* Review what you've discovered with Partners and other stakeholders throughout the planning phases.
Focus on high level issues for now, because that's the view that the Board and Finance Director will take of the firm and your project. You can fill in the details during the detailed planning phase.

Task: Complete the "About the problem/opportunity" section of your proposal.

State the problem (or opportunity) and the key business issues that are driving it. State the impact of the problem clearly, and in terms of customers, employees, costs and the growth of the business.

Determine the scope

Whilst identifying the problem or opportunity, you've probably formed a fairly good idea of the scope of the project. 'Scope' is simply a definition of the things that will either change as a direct consequence of the project, or will be affected in some way by the project:

* Think about the firm's clients. What are their expectations? How will your communicate with them about any changes they may see?
* Look at the firm's business processes. Think about the work processes of each department, and the links between departments, suppliers and clients.
* Examine the firm's IT and other systems. What can you change and what can't you change?
* Which departments, offices and people will be changed or affected by the project?
* Dig in to the hidden connections between people, processes and systems. Missing could have a huge impact on costs or time-scales down the line. Don't get too hung up on this step until the detailed planning stage though.
* Think very carefully about the things that definitely aren't included. Partners may have expectations that they don't tell you about because they seem 'obvious' to them.

Task: Complete the "Scope of the project" section of your proposal.

Define the scope clearly in terms of systems, processes and most importantly the people that will be affected. Make it very clear where the boundaries of the project lie and that if it isn't written in the plan, it won't be delivered.

Draw diagrams if they will make things clearer, and avoid technical jargon (but do describe things in the terms that the Partners use).

Set objectives

You can now draw up a list of objectives for the project. Just as you do when you set objectives for individuals in your team, strive to make your project objectives SMART:

* Specific: Break things down into clearly defined targets.
* Measurable: Use concrete metrics that show objective has been met. You can use financial or non financial indicators (e.g. customer satisfaction).
* Achievable: Projects require objectives that can be achieved, not goals to which one merely aspires.
* Realistic: Be honest with yourself about the time and money that is likely to be available for your project.
* Time-bound: Set a clear deadline for achieving each objective.

As well as stating the objectives of your project, you must state clearly what constitutes success for each objective. Do so in unambiguous terms and using measures that are well understood by the Partners.

Setting the project objectives is the first key point of negotiation for your project so discuss and agree the conditions of satisfaction with the Partners. You cannot proceed much further until the Partners agree with you and each other about what needs to be done.

Negotiation about objectives also draws the Partners in to the project. You'll need their support later when things get tough during implementation.

Task: Complete the "Project objectives" section of your proposal.

Set SMART objectives and be very clear about what success means for each objective.

Communicate and negotiate with the Partners about project objectives.

Work out the project schedule

This next step is to set out how you are likely to plan and implement the project. You probably won't have sufficient information to produce a highly detailed implementation plan during the first planning phase.

Instead lay out some high-level project phases with reference to the objectives that were set in the previous section. You should base your estimated time-scales on your previous experience of similar projects if possible, or seek advice from consultants, suppliers and your contacts within and outside the firm.

Avoid being too detailed or prescriptive about your project approach during the first planning phase. You may end up painting yourself into a corner or blinding yourself to new opportunities to do things differently. In my experience, there are always multiple solutions for even the most 'obvious' of problems.

Your project schedule could be a simple list of activities and dates, or something more complex created using project planning software. For the initial planning phase, a simple list of project phases and estimated delivery dates are sufficient.

If your project is large or complex, you may need the assistance of a dedicated project manager to create and manage your project plan during the detailed planning and implementation phases.
Time-scales are the second key point of negotiation for your project so again discuss and agree the time-scales with the Partners.

Task: Complete the "Project schedule" section of your proposal.

Draw up high-level phases and state clearly when each objective will be satisfied.

Communicate and negotiate with the Partners about project time-scales.

Project oversight

The most successful projects have two key management structures. Ask the key Partners who are most closely involved in initiating the project to assist you with setting up these management structures.

Firstly the project should have a project sponsor. This should be a senior and respected Partner who will be closely involved in the project throughout planning and implementation.

The role of the project sponsor is to support to the project in meeting its objectives.

Change in any form is a difficult process for all of us. The ideal project sponsor will have experience, authority and wisdom in equal measures:

* Experience to address valid issues when they are raised.
* Authority to push through change when the objections are not valid.
* Wisdom to know the difference!

The second key management structure is the project steering committee. This is made up of Partners and other stakeholders, (senior individuals affected by the project).

The role of the steering committee is to ensure that project meets its objectives.

It may not be necessary to form a dedicated steering committee unless yours is a large project. There will usually be an existing group or committee that can fulfil this role and most Partners won't welcome yet another series of non-chargeable meetings.

Ensure that the steering committee:

* Meets regularly.
* Has sufficient time to deal properly with steering the project.
* Has sufficient authority to obtain resources for the project.
* Is representative of the stakeholders.

The project team

As with the project schedule, you may not have enough information to draw up a structure for the project team during the initial planning phase. If you do have a reasonable idea, include a structure chart and describe the responsibilities of each role.

Task: Complete the "Project oversight" section of your proposal.

Draw up a chart of the oversight structure (and project structure if appropriate). Describe the responsibilities of each role.

Ask specifically for the sponsor and steering committee to be appointed, putting forward suggested names if appropriate.

Build the budget

During the first phase of planning your project, your budget should specify the costs for the detailed planning phase. Include:

* The costs of researching your project with other firms and suppliers.
* Communication and consultation with Partners and other stakeholders.
* Hiring a consultant or project manager to advise you and help with the detailed project plan if needed.

You should also estimate of the costs for the implementation phase of the project. Make it clear that this is an estimate, and detailed planning will generate accurate costings. Include the costs of:

* Hiring staff, including temporary cover for project team members.
* Professional services, e.g. consultants and legal advice.
* Office space, equipment and consumables.
* Hardware, software and implementation services.
* Project finance costs (e.g. leasing).

Task: Open the "Template - Project Budget.xls" file and complete it. (A completed example may be found in the "Example - Project Budget.pdf" file).

State the benefits

Include an outline business case for the project, setting out the costs vs. the financial benefits of the project. Again this is only an estimate, and detailed models are required later. Don't forget to re-iterate the non-financial benefits of the project.

During the detailed planning phase, you will need to build detailed models of costs based on the project plan and supplier tenders, and a full business case modelled on the research that you have conducted.

Costs are the third and final area of negotiation for your project. Again you need to discuss and agree reasonable costs for the project with the Partners.

Task: Complete the "The benefits" section of your proposal.

Summarise the financial and non-financial benefits of the project vs. the estimated costs.

Summarise the proposal

Convince your audience to read your proposal by summarising it in an executive summary of three or four paragraphs.

Task: Complete the "Executive summary" section of your proposal.

Summarise what you are asking for and the key features and benefits of your proposal in three or four paragraphs.
Review the proposal

Ensure that you review drafts of your project proposal with the Partners regularly during the planning phases. Try to do this face-to-face, otherwise your draft documents probably won't be read until it's too late to address significant objections.

A regular review process is your best opportunity to negotiate about and communicate the project's scope, objectives, timescales and costs. In the real world, there is no such thing as the "ideal" solution.

Ultimately you have to strike the best balance possible between the project's scope and objectives and the amount of time, money and effort needed to deliver those objectives.

It is unlikely that any two Partners will have an identical view of what constitutes the correct balance of these project variables. Frankly, only time and experience of Partnership politics will teach you the best methods of resolving these differences of opinion.

Obtain approval

Once you and the Partners are satisfied with it, you should seek executive approval for your project proposal.
You should discuss your proposal with each decision-maker on a one-to-one basis before presenting it to the full Board or Management Committee. This will avoid unexpected objections on the day and hopefully turn the event into a formality.

If you're not confident presenting proposals to a senior audience such as this, get help in plenty of time. Review your proposal and presentation with colleagues, ask your HR department for some coaching or, dare I say it, give me a call!

There will almost certainly be some degree of dissent hanging over from the initial planning phase. It is vital that you get the right project sponsor and the steering committee appointed at this stage, in order to keep the project on track.

Task: Once approved, start communicating about your project as soon as possible.

Tailor your message and communicate with each group that will be affected by your project in some way.

Remember that communication is a two-way process!

Finally

Nothing stands still in the business world for long. We've all heard of projects that delivered their objectives only to be told "We don't need that any more". Establish a formal project change process that:

* Regularly compares the projects objectives against business requirements.
* Reviews the impact of changing objectives on project time-scales and costs.
* Approves or rejects those changes.
* Communicates important changes to Partners and other stakeholders.

I wish you every success with your project, and I hope that you find it an exciting challenge as well as a great learning experience!

(c) 2004-2008
www.legal-it.info